More property sellers lower offering prices: brokerage

Properties on which sellers lowered their offering prices increased by 65 percent in Taipei in September compared to May, due largely to the implementation of the real-value home registration system, a brokerage firm said yesterday.

The margin of increase was 41 percent in New Taipei, according to a survey released by the H&B Group.

Of all properties that saw a decline in offering prices, those between 46 and 55 ping accounted for 24 percent, followed by suites less than 15 ping and properties larger than 55 ping. Each ping is 3.3 square meters.

"This indicates the real-value registration policy has had the biggest impact on owners of small-size suites, for which loans are harder to get, and owners of large-size homes, which are more expensive," H&B said.

The new policy requires homeowners to register their properties based on the real transaction value that they got their homes with. The figures will be published on the government's housing websites. The intention is to provide transparency and keep sellers from setting offering prices at unreasonable levels.

The measure has resulted in a sales freeze in the market, with August home sales in Taipei, New Taipei and Taichung all down by over 20 percent compared to July. Sales in Kaohsiung and Tainan fell more drastically by 30 percent and 45 percent, respectively.

In Taipei, sales of luxury apartments over NT$80 million in value reduced by 40 percent in August compared to July, due to the measure as well as other credit tightening policies targeting large-size properties, a poll by Yung Ching Realty found.